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A taxpayer has requested clarification on how to classify their falcon breeding and sales activity and the corresponding VAT and Income Tax regimes. The Directorate General for Taxes (DGT) indicates that taxation will depend on whether the activity is classified as independent or dependent livestock farming, in accordance with the requirements of the Economic Activities Tax (IAE).
The classification determines whether the taxpayer applies the simplified regime or the special regime for agriculture, livestock, and fishing, affecting how net yield indices are applied for tax purposes.
The tax team reviews your specific situation.
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